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Inox Wind Ltd.

BSE: 539083 Sector: Engineering
NSE: INOXWIND ISIN Code: INE066P01011
BSE 10:27 | 19 Jul 78.25 -0.95
(-1.20%)
OPEN

78.95

HIGH

78.95

LOW

77.60

NSE 10:14 | 19 Jul 78.25 -0.70
(-0.89%)
OPEN

78.95

HIGH

79.65

LOW

77.20

OPEN 78.95
PREVIOUS CLOSE 79.20
VOLUME 4720
52-Week high 158.40
52-Week low 77.60
P/E
Mkt Cap.(Rs cr) 1,737
Buy Price 78.30
Buy Qty 95.00
Sell Price 78.65
Sell Qty 134.00
OPEN 78.95
CLOSE 79.20
VOLUME 4720
52-Week high 158.40
52-Week low 77.60
P/E
Mkt Cap.(Rs cr) 1,737
Buy Price 78.30
Buy Qty 95.00
Sell Price 78.65
Sell Qty 134.00

Inox Wind Ltd. (INOXWIND) - Auditors Report

Company auditors report

To the members of Inox Wind Limited

REPORT ON THE STANDALONE IND AS FINANCIAL STATEMENTS

We have audited the accompanying standalone Ind AS financial statements of Inox WindLimited ("the Company") which comprise the Standalone Balance Sheet as at 31stMarch 2018 the Standalone Statement Profit and Loss (including Other ComprehensiveIncome) the Standalone Statement of Cash Flows and the Standalone Statement of Changes inEquity for the year then ended and accounting summary of the significant policiesand other explanatory information ("the standalone Ind AS financialstatements").

MANAGEMENT's RESPONSIBILITY FOR THE STANDALONE IND AS FINANCIAL STATEMENTS

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards (Ind AS) prescribed underSection 133 of the Act.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalone IndAS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

AUDITOR's RESPONSIBILITY

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe standalone Ind AS financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the standalone Ind ASfinancial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone Ind AS financial statements.

OPINION

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India including the Ind AS of thefinancial position of the Company as at 31st March 2018 financial performance includingother comprehensive income its cash flows and changes in equity for the year ended onthat date.

1. As required by the Companies (Auditor's Report) Order 2016 issued by the CentralGovernment of India in terms of sub-section (11) of section 143 of the Act we give in theAnnexure I a statement on the matters specified in paragraph 3 and 4 of the said Order.

2. As required by Section 143 (3) of the Act we report that:

(a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.

(b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.

(c) The Standalone Balance Sheet the Standalone Statement of Profit and Loss includingOther Comprehensive Income the Standalone Statement of Cash Flows and the StandaloneStatement of Changes in Equity dealt with by this Report are in agreement with the booksof account.

(d) In our opinion the aforesaid standalone Ind financial statements comply with theIndian Accounting AS Standards prescribed under Section 133 of the Act.

(e) On the basis of the written representations received from the directors as on 31stMarch 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 from being appointed as a director in terms of Section164 (2) of the Act.

(f) With respect to the adequacy of the internal financial controls with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate Report in Annexure II. (g) With respect to the other matters to beincluded in the Auditor's Report in accordance with Rule 11 of the Companies (Audit andAuditors) Rules 2014 in our opinion and to the best of our information and according tothe explanations given to us: i. The Company has disclosed the impact of pendinglitigations on its financial position in its standalone Ind AS financial statements referNote 40 to the standalone Ind AS financial statements; ii. The Company has made provisionas required under the applicable law or accounting standards for material foreseeablelosses on long-term contracts including derivative contracts; and iii. There were noamounts which were required to be transferred to the Investor Education and ProtectionFund by the Company.

For Patankar & Associates
Chartered Accountants
Firm's Registration No. 107628W
S S Agrawal
Place: Pune Partner
Date : 18th May 2018 Membership No. 049051

Annexure I to Independent auditor's report to the Members of Inox Wind Limited on thestandalone Ind AS financial statements for the year ended 31st March 2018 referred to inparagraph 1 under the heading "Report on Other Legal and RegulatoryRequirements" of our report of even date.

In term of the Companies (Auditor's Report) Order 2016 ("the Order") on thebasis of information and explanation given to us and the books and records examined by usin the normal course of audit and such checks as we considered appropriate to the best ofour knowledge and belief we state as under:

1. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets. The fixed assets have been physicallyverified by the management at reasonable intervals and no material discrepancies have beennoticed on such verification. The title deeds of all immovable properties are held in thename of the Company.

2. The inventories were physically verified by the management at reasonable intervalsduring the year and no material discrepancies were noticed on physical verification ofinventories as compared to book records.

3. The Company has granted unsecured loans to two companies covered in the registermaintained under section 189 of the Companies Act 2013. The terms and conditions of thesaid loans are not prima facie prejudicial to the interest of the Company. The saidparties are regular in repayment of principal and payment of interest as stipulated andthere are no overdue amounts.

4. The Company has complied with the provisions of Section 185 and section 186 of theAct in respect of investments made or loans given or guarantee or security provided.

5. The Company has not accepted any deposits within the meaning of sections 73 to 76 ofthe Companies Act 2013 and the Rules framed thereunder and hence the provisions of clause3(v) of the Order are not applicable to the Company.

6. We have broadly reviewed the books of account maintained by the Company pursuant tothe Rules made by the Central Government for maintenance of cost records under section148(1) of the Companies Act 2013 for activities of the Company to which the said Rulesare made applicable and are of the opinion that prima facie the prescribed accounts andrecords have been made and maintained.

7. The Company is regular is depositing undisputed statutory dues in respect ofprovident fund employees'state insurance sales-tax and income-tax. The Company is notregular in depositing undisputed statutory dues in respect of service tax duty ofcustoms value added tax cess and goods & service tax with the appropriateauthorities as under: a) Value added tax of ` 3.79 lakhs service tax of ` 261.80 lakhsand R&D cess of ` 35.62 lakhs are in arrears as at the end of the year for a periodof more than six months from the date they became payable. b) During the year there aredelays in payment of customs duty. Amount of ` 683.05 lakhs is in arrears as at the endof the year for a period of more than six months from the date they became payable andthe aggregate outstanding as at the end of the year is ` 889.49 lakhs. c) In respect ofGoods & Service Tax there are delays in payments of dues for the period fromSeptember 2017 to March 2018 and the aggregate outstanding as at the end of the year is `3749.62 lakhs.

Particulars of dues of service tax and value added tax which have not been deposited onaccount of disputes are as under:

Name of the Statute Nature of dues and the period to which the amount relates Amount ( ` in Lakh) Forum where dispute is pending
Service Tax Service tax demand for the period from September 2011 to March 2016 1380.05 CESTAT Allahabad
Himachal Pradesh Value Added Tax Penalty for delayed payment of tax during the year 2013-14 70.04 Himachal Pradesh Tax Tribunal Dharmshala.
Penalty for delayed payment of tax during the year 2012-13 19.48 Deputy Excise and Taxation Commissioner cum Appellate Authority Palampur.

There are no dues of sales tax duty of customs or duty of excise which have not beendeposited on account of disputes.

8. During the year the Company has not defaulted in repayment of dues to banks orfinancial institutions except that there were few delays in repayment of principal andpayment of interest to banks. There are no defaults as at the balance sheet date. TheCompany did not have any borrowings from Government or by way of debentures.

9. The Company has applied the moneys raised by way of initial public offer and termloans for the purposes for which the moneys were raised.

10. No fraud by the Company or on the Company by its officers or employees has beennoticed or reported during the course of our audit.

11. The Company has complied with the provisions of section 197 of the Companies Act2013 regarding payment of managerial remuneration.

12. The Company is not a Nidhi Company and hence the provisions of clause 3(xii) of theOrder are not applicable to the Company.

13. All transactions with the related parties are in compliance with sections 177 and188 of Companies Act 2013 and the details have been disclosed in the standalone financialstatements etc. as required by the applicable accounting standards.

14. The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review and hence theprovisions of clause 3(xiv) of the Order are not applicable to the Company.

15. The Company has not entered into any non-cash transactions with directors orpersons connected with them and hence the provisions of clause 3(xv) of the Order are notapplicable to the Company.

16. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934 and hence the provisions of clause 3(xvi) of the Order are notapplicable to the Company.

For Patankar & Associates
Chartered Accountants
Firm's Registration No. 107628W
S S Agrawal
Place: Pune Partner
Date : 18th May 2018 Membership No. 049051

Annexure II to Independent auditor's report to the members of Inox Wind Limited on thestandalone Ind AS financial statements for the year ended 31 st March 2018 referred to inparagraph 2(f) under the heading "Report on Other Legal and RegulatoryRequirements" of our report of even date.

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial Inox Wind Limited ("theCompany") controlswith reference to as of 31st March 2018 in conjunction with ouraudit of the standalone Ind AS financial statements of the Company for the year ended onthat date.

MANAGEMENT's RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS

The Company's management is responsible for establishing and maintaining internalfinancial controls with reference to financialstatements criteria established by theCompany considering the essential components of internal controls stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting (the "GuidanceNote") issued by the Institute of Chartered Accountants of India ("ICAI").These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to Company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Act.

AUDITOR's RESPONSIBILITY

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to financialstatements based on our audit. We conducted our auditin accordance with the Guidance Note and the Standards on Auditing issued by ICAI anddeemed to be prescribed under section 143(10) of the Act to the extent applicable to anaudit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the ICAI. Those Standards and the Guidance Note require thatwe comply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial established and maintained and if suchcontrols operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system with reference to financial statements and theiroperating effectiveness.

Our audit of internal financial controls with reference to financial statementsincluded obtaining an understanding of internal financial controls with reference tofinancial statements assessing the risk that a material weakness exists and testing andevaluating the design and operating effectiveness of internal controls based on theassessed risk. The procedures selected depend on the auditor's judgement including theassessment of the risks of material misstatement of the Ind AS financial statementswhether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemwith reference to financial statements.

MEANING OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO FINANCIAL STATEMENTS

A company's internal financial controls with reference to financial statements is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial controlswith reference to financial statements includes those policies and procedures that (1)pertain to the maintenance of records that in reasonable detail accurately and fairlyreflect the transactions and dispositions of the assets of the company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company's assets that could have a material effect on the standalonefinancial statements.

INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO FINANCIALSTATEMENTS

Because of the inherent limitations of internal financial controls with reference tofinancial statements including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls withreference to financial statements to future periods are subject to the risk that theinternal financial control with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

OPINION

In our opinion the Company has in all material respects an adequate internalfinancial controls system with reference to financial statements and such internalfinancial controls with reference to financial statements were operating effectively as at31st March 2018 based on the internal control with reference to financial statementscriteria established by the Company considering the essential components of internalcontrols stated in the Guidance Note issued by ICAI.

For Patankar & Associates
Chartered Accountants
Firm's Registration No. 107628W
S S Agrawal
Place: Pune Partner
Date : 18th May 2018 Membership No. 049051